The precious metal has dropped 28 percent so far this year. Legland lists several events that were unable to lift gold.

"The Italian elections, the Cyprus bail-in and even the U.S. shutdown and debt ceiling failed to drive gold higher," he explains.

"On top of that, financial markets began to anticipate the end of Fed QE [quantitative easing] in early 2013, and this maintained pressure on the gold price throughout the year, as the expansion of central bank balance sheets was considered to be a key gold driver."

And deflation risks should continue to weigh on the metal, Legland says.